Question

2 - Homework Saved Help Aracel Engineering completed the following transactions in the month of June. 01.01:34 a. Jenna Aracel, the owner, invested $235,000 cash, office equipment with a value of $5,800, and $79,000 of drafting equipment to launch the company in exchange for common stock b. The company purchased land worth $51,000 for an office by paying $7.900 cash and signing a long-term note payable for $43,100. C. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. d. The company paid $3,500 cash for the premium on an 18-month insurance policy. e. The company completed and delivered a set of plans for a client and collected $7.700 cash f. The company purchased $27,000 of additional drafting equipment by paying $10,400 cash and signing a long-term note payable for $16,600. g. The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,400 of additional office equipment on credit. 1. The company completed engineering services for $27,000 on credit. J. The company received a bill for rent of equipment that was used on a recently completed job. The $1,594 rent cost must be paid within 30 days. k. The company collected $7,000 cash in partial payment from the client described in transaction g. 1. The company paid $2,300 cash for wages to a drafting assistant m. The company paid $1,400 cash to settle the account payable created in transaction h. n. The company paid $1,170 cash for minor maintenance of its drafting equipment. o. The company paid a $10,000 cash dividend. p. The company paid $1,200 cash for wages to a drafting assistant. 4. The company paid $2,700 cash for advertisements on the Web during June. eBook References Required: 1. Prepare general Journal entries to record these transactions using the following titles: Cash (101): Accounts Receivable (106): Prepaid Insurance (108) Office Equipment (163) Drafting Equipment (164); Building (170): Land (172): Accounts Payable (201): Notes Payable (250): Common Stock (307), Dividends (319), Engineering Fees Earned (402) Wages Expense (601): Equipment Rental Expense (602) Advertising Expense (603), and Repairs Expense (604). 2. Post the journal entries from part 1 to the ledger accounts 3. Prepare a trial balance as of the end of June

Answer 1

First start with Journal Entries - with detailed line wise Journal Entries . Please see line by line .

	Journal Entries	Debit($)	Credit($)
a	Cash	2,35,000
	Office Equipment	5,800
	Drafting Equipment	79,000
	Owners Equity		3,19,800
	( Jenna Aracel capital
b	Land	51,000
	Cash		7,900
	Note Payable		43,100
	( acounted / purchased land )
c	Building	55,000
	Cash		55,000
	( purchased portable Building)
d	Pre Paid Insurance	3,500
	Cash		3,500
	( 18 months Insurance paid)
e	Cash	7,700
	Sales - Fees earned		7,700
f	Drafting Equipment	27,000
	Cash		10,400
	Note Payable		16,600
g	Engineer servie - Client ( Account receivable)	16,000
	Sales		16,000
h	Office Equipment	1,400
	Note Payable		1,400
i	Engineer servie - Client ( Account receivable)	27,000
	Sales		27,000
J	Rent Equiment	1,594
	Note Payable		1,594
k	Cash	7,000
	Engineer servie - Client ( Account receivable)		7,000
l	Wages	2,300
	Cash		2,300
m	Note Payable	1,400
	Cash		1,400
n	Drafting Equipment	1,170
	Cash		1,170
o	Dividend	10,000
	Cash		10,000
p	Wages	1,200
	Cash		1,200
	( drafting purpose)
q	Advertisement	2,700
	Cash		2,700

T account as below - selective to prepare Adjusted Trial balance

Cash
Details	Amnt($)	Details	Amnt($)
Opening Bal		Land	7,900
Owners Equity	2,35,000	Building	55,000
Client collection	7,700	Pre paid Insurance	3,500
Client collection	7,000	Drafting Equipment	10,400
		Wages	2,300
		Note Payable	1,400
		Drafting Equipment	1,170
		Dividend	10,000
		Wages	1,200
		Advertisement Exp	2,700
		Closing Bal	1,54,130
	2,49,700		2,49,700
Account receivable
Details	Amnt($)	Details	Amnt($)
Opening Bal
Sales	16,000	Cash	7,000
Sales	27,000	Closing Bal	36,000
	43,000		43,000
Drafting Equipment
Details	Amnt($)	Details	Amnt($)
Opening Bal
Owners Equity	79,000
Cash	10,400
Note Payable	16,600
Cash	1,170
	-	Closing Bal	1,07,170
	1,07,170		1,07,170
Office Equipment
Details	Amnt($)	Details	Amnt($)
Opening Bal
Owners Equity	5,800
Note Payable	1,400
	-	Closing Bal	7,200
	7,200		7,200
Note Payable
Details	Amnt($)	Details	Amnt($)
Cash	1,400	Opening Bal
Closing Bal	61,294	Land	43,100
	-	Drafting Equipment	16,600
	-	Office Equipment	1,400
		Rent Equipment	1,594
	62,694		62,694
Sales ( fees earned)
Details	Amnt($)	Details	Amnt($)
	-
Closing Bal	50,700	Cash	7,700
	-	Sales	16,000
	-	Sales	27,000
	50,700		50,700
Owners Equity- Common Stock
Details	Amnt($)	Details	Amnt($)
	-
Closing Bal	3,19,800	Cash	2,35,000
	-	Office Equipment	5,800
	-	Drafting Equipment	79,000
	3,19,800		3,19,800
Wages
Details	Amnt($)	Details	Amnt($)
	-
Cash	2,300		-
Cash	1,200	Closing Bal	3,500
	-
	3,500		3,500

Final Trial Balance -

Trial Balance
Details	Amount ($)	Details	Amount ($)
Cash	1,54,130
Account Receivable	36,000	Notes payable	61,294
Office Equipment	7,200	Common Stock	3,19,800
Drafting Equipment	1,07,170	Sales ( fees earned)	50,700
Pre paid Insurance - ( as per Journal Entry)	3,500
Building( as per Journal Entry)	55,000
Land( as per Journal Entry)	51,000
Dividend ( as per Journal Entry)	10,000
Wages ( as per Journal Entry)	3,500
Advertisement ( as per Journal Entry)	2,700
Rental Equipment- ( as per Journal Entry)	1,594
Total	4,31,794	Total	4,31,794

In certain cases , I updated " As per Journal Entry " mean - number directly considered from Journal Entry as mentioned above . I have not created T account for Single transaction.

If you need , I can provide the same .

Thank you